Intermediate Accounting II-Assignment 2-2

Intermediate Accounting II-Assignment 2-2 - The company...

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Intermediate Accounting II Assignment 2 Team Yellow P 13-11 1) Polska Corporation Note 1: Litigation. Raymark is a defendant in two personal injury lawsuits. The following table summarizes the activity in these lawsuits. Claims Pending at the beginning of the year 0 Received during the year $250,000 Pending at the end of the year $250,000 Trial Activity Total Trials 2 The company is seeking to reasonably determine its liability. However, it is not possible to predict which theory of insurance will apply, the number of lawusits still to be filled the cost of selling and defending the existing and unifed cases or the ultimate impact of of these lawsuits on the Company's consolidated financial statements. 2) Polska Corporation Note 2: Expropriation of assets. The company has received notification by host country its intentions to expropriate the assets and businesses of all foreign investors.
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Unformatted text preview: The company expects to receive 40% of fair value of assets. Properties Fair value $9,500,000 Loss $5,700,000 Value Recovered $3,800,000 3) No journal entries required. Loss related to fire and explosion are not accrued in the financial sta Intermediate Accounting II Assignment 2 Team Yellow atements. Intermediate Accounting II Assigment 2 Team Yellow P 13-14 Warranty and Coupon Computation Sales Warranty Expenditures 2009 $900,000 $6,500 2010 $1,100,000 $17,200 2011 $1,200,000 $62,000 Sales 2011 Cash or Accounts Receivables $1,200,000 Sales $1,200,000 Warranty Expense $62,000 Cash, Inventory, Accrued Payroll $62,000 Liability under Warranties $102,000 Cash, Inventory, Accrued Payroll $102,000 (Warranty costs Incurred) Intermediate Accounting II Assigment 2 Team Yellow Estimated Warranty Costs (Dollar Sales) $45,000 $33,000 $24,000 $102,000...
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This note was uploaded on 03/21/2010 for the course ACCT acct taught by Professor Jones during the Spring '10 term at DeVry Sherman Oaks.

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Intermediate Accounting II-Assignment 2-2 - The company...

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